It seems that investors are not that inclined towards T-Mobile’s acquisition of Sprint, which took place a few days back. Both the carriers had huge hopes and expectations regarding the merger, since infrastructure was to be used for extra reached. The people behind both the companies opinionated that the extra technology power could be used for enhancing the wireless connectivity across the country. However, after observing the happenings at the stock market following the announcement of the merger, the stock value of Sprint did come down by a whopping 17%, which is unprecedented. This basically shows that the investors are not interested in the merger.
This comes amidst the merger’s claims that the telecommunication services across the country will become more competitive, resulting in lower costs for the basic users. In addition to that, the decision would also be advocated by FCC, which has always maintained a positive attitude towards acquisitions and the following competitive nature of the market. At the same time, the decision has put the common people under the core issue of anti-trust. It was also clear that the Congress members were interested in knowing the impact of the merger in the actual prices of telecommunication services in the country.
Apparently, this has put T-Mobile and Sprint in a difficult situation, where their plans to establish the more powerful 5G connectivity system would be doubted by the public. Even before the announcement was made, there were rumors and reports regarding how the merger could negatively affect the wireless consumers in the country. Doubts included that whether the unlimited plans would be removed and whether the overall competitive nature of the market would be affected, since the market will be dominated by three majority players only. However, only time will prove whether the combined effort of T-Mobile and Sprint would be able to bring the good back.